Finance I 2400-PP2FI1

Individual meetings of the lecture are focused on the following matters:
1. The role and structure of the financial system - characteristics of money, circular motion in the economy, characteristics, elements and functions of the financial system. Warsaw Stock Exchange.Types of financial instruments and financial markets (spot, futures and forward, option).
2. Money market - segments and instruments of the money market, interbank deposits, bills, certificates.
3. Capital market. Structure of the market. Stock markets worldwide. Primary market. Stock exchange. Asssets traded. Risk on capital market. Investing on the stock market. Framework of fundamental analysis. Common Ratios and what they mean. Technical Analysis. Trendlines. Price patterns.
4. Analysis and valuation of bonds - types of bonds, the factors affecting the price of bonds, the gross price, the net price and interest accrued on the bonds, numerical characteristics of bonds, interest rate risk, bond-investment strategies (immunization, strategy of the adjustment of cash flows).
5. Structure and analysis of financial statements - types, importance and auditing of financial statements, elements of financial statements, vertical and horizontal analysis of the balance sheet, income statement and cash flow statement. Criteria for investment decisions - financial investment, simple and discounted payback period, return on investment period and annual, the net present value, internal rate of return.